Rumors have been swirling for some time about an entrant from Dell into the smart phone business. They started up again in December on Engadget, and MobilitySite seems to say its a safe bet to say the Dell Smart Phone is coming. But can a Dell product really compete with the iPhone?
I was thinking about the differences in the brands, and how Dell might actually compete in this market.
First, let's just be honest. They're not going to get iPhone users to switch. That boat has sailed and unless the Dell Phone enables you to walk on water, people aren't making the switch. Second, the iPhone is going to look better, and be cooler, than anything Dell puts out. Add to this the problem that the early adopters of technology already have an iPhone. Who is left to buy a new product? Certainly not enough numbers to make it worthwhile to go head to head.
But Dell does have an advantage.
Dell is a brand you buy when you want a throwaway. The perfect example, is that I bought a Dell Latitude laptop as a test PC, and to run one application that wouldn't work with our Apple machines. It's become the laptop I lug around, because if it breaks, I can easily replace it.
In my mind, that's what the Dells are - cheap products that you use as a last resort. Now that doesn't mean it's true. Dell has high-end products as well, and I don't know that Vaio or some other product is superior, but for most of my corporate life, I had Dell or Compaq desktops and laptops. They were older products purchased by the company in bulk, and that's how they were perceived.
Most of the people I know have that view of Dell as a brand, but each branch of my family has at least one Dell as a computer (and sometimes several), so maybe that's not a bad place to be. The iPhone is expensive, and anyone buying it is locked into AT&T as a platform. What if you don't want to switch, or if you're locked in a contract with another company? And what about families If you're on a calling plan already with family and friends, you don't necessarily want to change just because of the phone.
So what if Dell's target market wasn't the cool kids? Dell sells large quantities to corporations. If they do sell a smart phone, why not go after the audience most likely to buy in bulk? We all know that the Latitude or other Dell laptops is usable, and we learned it because our employers bought them for us. There's a sense of familiarity with the product. It may not be shiny and new, but at least I know it's flaws because I've worked with it. Add this to the fact that Windows Mobile, the suspected platform for Dell is far more compatible with our office applications than the iPhone, and the built-in audience starts to make more sense.
This is an area when Dell can compete. According to HandCellPhone.com, Apple added Lotus Notes to their iPhone applications, but that's not exciting. If I could get a Dell smart phone that integrates easily with my office software, address book, and applications, and it's part of my corporate lifestyle, then there's a convenience that I may adopt in my personal life. Id I already had a Dell phone from the company, and it was just better than average, the chances of me buying one for the family goes way up. We all have to be on the same plan, and even if it's not the iPhone, it's the best option when Daddy or Mommy has to carry it for work.
That's the sweetspot for the marketing plan. Playing to their strengths is the smart move, but to do it correctly, the handset has to be open to all wireless providers. The Dell slogan can even be something about "the smart phone for the common man", or "Dell, compatible with your work and your life."
It's a winning strategy. The question is whether Dell will pursue it, or try to head-to-head.
While I agree that it would be nearly impossible for Dell to make an iPhone killer, it's important to note a few things:
1) Dell, to many people (me included), is viewed as a great brand, and the #1 choice for a laptop or desktop. I own one of each and have found them to be the most bug-free out of any computers I have owned, and the easiest to use, not to mention by far the most reliable.
2) Dell has excellent distribution possibilities, especially now that they sell Dell in stores like Walmart. Don't underestimate how many phones they can sell this way.
3) Dell made the maintenance and ownership of computers a breeze, with automatic updates, software that installs in one click, and a constant support application that is your helpful guide to getting the most out of your dell. Nothing is stopping Dell from leveraging the millions upon millions of people who use Dell daily to connect the smart phones with their computers.
Posted by: Pinny Cohen | January 20, 2008 at 02:40 PM